IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i7p3808-d526759.html
   My bibliography  Save this article

The VUCAlity of Projects: A New Approach to Assess a Project Risk in a Complex World

Author

Listed:
  • Thordur Vikingur Fridgeirsson

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Helgi Thor Ingason

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Haukur Ingi Jonasson

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

  • Bara Hlin Kristjansdottir

    (School of Technology, Reykjavík University, 102 Reykjavik, Iceland)

Abstract

The “projectification” of Western societies has been consolidated by a number of studies and now calls for various adaptations in the managerial framework of project management. Faster rates of change in complex environments antagonize the traditional risk assessment approach and demand a more dynamic approach. A framework commonly used for understanding the challenges of complexity in the modern business environment is VUCA. VUCA stands for volatility, uncertainty, complexity, and ambiguity. In order to mitigate the impact of a VUCA environment on complex projects, organizations and project leaders need to know the type and severity of challenges they are dealing with in each unique project. This study explores the VUCA framework in the context of projects and suggests that the VUCA approach can enhance the conventional risk assessment procedure. The study also drafts an accessible diagnostic tool to assess the VUCA dimensions a project is facing, so that project managers can effectively isolate “fat tail” risk events. The tool is tested on five complex projects in the manufacturing industry and its effectiveness is discussed.

Suggested Citation

  • Thordur Vikingur Fridgeirsson & Helgi Thor Ingason & Haukur Ingi Jonasson & Bara Hlin Kristjansdottir, 2021. "The VUCAlity of Projects: A New Approach to Assess a Project Risk in a Complex World," Sustainability, MDPI, vol. 13(7), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3808-:d:526759
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/7/3808/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/7/3808/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christophe Midler, 1995. "Projectification of the Firm : the Renault Case," Post-Print hal-00262524, HAL.
    2. Marian Bosch-Rekveldt & Hans Bakker & Marcel Hertogh, 2018. "Comparing Project Complexity across Different Industry Sectors," Complexity, Hindawi, vol. 2018, pages 1-15, June.
    3. Midler, Christophe, 1995. ""Projectification" of the firm: The renault case," Scandinavian Journal of Management, Elsevier, vol. 11(4), pages 363-375, December.
    4. F Ackermann & C Eden & T Williams & S Howick, 2007. "Systemic risk assessment: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 39-51, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandro Margherita & Emanuele Banchi & Alfredo Biffi & Gianluca di Castri & Rocco Morelli, 2022. "Beyond Total Cost Management (TCM) to Systemic Value Management (SVM): Transformational Trends and a Research Manifesto for an Evolving Discipline," Sustainability, MDPI, vol. 14(19), pages 1-16, October.
    2. Goerz, Katharina, 2021. "The empowered project manager: Employee perception of empowerment," Journal of Applied Leadership and Management, Hochschule Kempten - University of Applied Sciences, Professional School of Business & Technology, vol. 9, pages 41-60.
    3. Katarina Buganova & Maria Luskova & Jozef Kubas & Michal Brutovsky & Jaroslav Slepecky, 2021. "Sustainability of Business through Project Risk Identification with Use of Expert Estimates," Sustainability, MDPI, vol. 13(11), pages 1-17, June.
    4. Joanna Moczydłowska & Joanna Sadkowska & Beata Żelazko & Carmen Nadia Ciocoiu & Ewa Stawicka, 2023. "Understanding Risk Culture in the Context of a Sustainable Project: A Preliminary Study," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    5. Thordur Vikingur Fridgeirsson & Helgi Thor Ingason & Svana Helen Björnsdottir & Agnes Yr Gunnarsdottir, 2021. "Can the “VUCA Meter” Augment the Traditional Project Risk Identification Process? A Case Study," Sustainability, MDPI, vol. 13(22), pages 1-13, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bloomfield, Katherine & Williams, Terry & Bovis, Chris & Merali, Yasmin, 2019. "Systemic risk in major public contracts," International Journal of Forecasting, Elsevier, vol. 35(2), pages 667-676.
    2. Manning, Stephan, 2017. "The rise of project network organizations: Building core teams and flexible partner pools for interorganizational projects," Research Policy, Elsevier, vol. 46(8), pages 1399-1415.
    3. Martin M�ller & Allison Stewart, 2016. "Does Temporary Geographical Proximity Predict Learning? Knowledge Dynamics in the Olympic Games," Regional Studies, Taylor & Francis Journals, vol. 50(3), pages 377-390, March.
    4. Terrien, Clara & Maniak, Rémi & Chen, Bo & Shaheen, Susan, 2016. "Good Practices for Advancing Urban Mobility Innovation: A Case Study of One-Way Carsharing," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt53z3h2gt, Institute of Transportation Studies, UC Berkeley.
    5. Frédéric Segonds & Julien Nelson & Améziane Aoussat, 2012. "PLM and architectural rehabilitation : a framework to improve collaboration in the early stages of design," Post-Print hal-00719169, HAL.
    6. Wagner Reinhard F. & Radujkovic Mladen, 2022. "Effects of lagging projectification in the public sector on realizing infrastructure projects," Organization, Technology and Management in Construction, Sciendo, vol. 14(1), pages 2559-2570, January.
    7. Peter B. Doeringer & Pacey Foster & Stephan Manning & David Terkla, 2013. "Project-based industries and craft-like production: structure, location and performance," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 4, pages 99-151, Edward Elgar Publishing.
    8. Małgorzata Ćwikła & Anna Góral & Ewa Bogacz-Wojtanowska & Magdalena Dudkiewicz, 2020. "Project-Based Work and Sustainable Development—A Comparative Case Study of Cultural Animation Projects," Sustainability, MDPI, vol. 12(16), pages 1-24, August.
    9. repec:hal:journl:hal-01070044 is not listed on IDEAS
    10. Martin Müller, 2014. "The Topological Multiplicities of Power: The Limits of Governing the Olympics," Economic Geography, Clark University, vol. 90(3), pages 321-339, July.
    11. Vasile-Ibrian CARAMIDARU, 2019. "The Projectification Of Nonprofit Organizations: Insights From (And For) Multi-Project Management Research," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 84-93, November.
    12. Marie-Alix Deval & Sophie Hooge & Benoit Weil, 2021. "The emergence of “experts of the unknown” – Learnings from Renault and SNCF," Post-Print hal-03264373, HAL.
    13. Pierre-Antoine Arrighi & Pascal Le Masson & Benoit Weil, 2013. "Breaking the dilemma between robustness and generativeness: a comparative experiment on the use of new design software at the design-gap," Post-Print hal-00903606, HAL.
    14. Patrícia Marques & Paulo Sousa & Anabela Tereso, 2023. "Sustainability in Project Management: PM 2 versus PRiSM TM," Sustainability, MDPI, vol. 15(22), pages 1-36, November.
    15. Hana Krchová, 2019. "Project tools in relation to the implementation of the ability of innovation companies in Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 291-302, September.
    16. Gernot Grabher, 2002. "Cool Projects, Boring Institutions: Temporary Collaboration in Social Context," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 205-214.
    17. Anthony Hussenot & Viviane Sergi, 2018. "Collaborating Without (Formal) Organization: How Do Independent Workers Call Into Question the Matter of Organization?," Post-Print hal-01948575, HAL.
    18. Mitsuru Kodama & Tomoatsu Shibata, 2013. "Research into Ambidextrous R&D in Product Development New Product Development at a Precision Device Maker," TMARG Discussion Papers 109, Graduate School of Economics and Management, Tohoku University.
    19. Fanny Simon & Albéric Tellier, 2016. "Balancing contradictory temporality during the unfold of innovation streams," Post-Print hal-01572302, HAL.
    20. Jorg Sydow & Udo Staber, 2002. "The Institutional Embeddedness of Project Networks: The Case of Content Production in German Television," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 215-227.
    21. Kuura, Arvi & Blackburn, Robert A. & Lundin, Rolf A., 2014. "Entrepreneurship and projects—Linking segregated communities," Scandinavian Journal of Management, Elsevier, vol. 30(2), pages 214-230.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3808-:d:526759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.